BG has gas find south of China's Hainan Island

By OGJ editors
HOUSTON, Dec. 15 – BG Group has reported a gas discovery at the first deepwater exploratory well in the Qiongdongnan basin in the South China Sea south of Hainan Island.

The Lingshui 22-1-1 exploratory well, in 1,338 m of water 130 km offshore, encountered gas-bearing sands. No other details were available. BG Group will further analyze well data to understand the potential of Block 64/11 (see map, OGJ, Dec. 17, 2001, p. 60).

BG Group called the result, from its first well off China, encouraging. The company holds three blocks that total about 15,000 sq km. A second well is to be completed early in 2011 and 1,500 sq km of 3D seismic are to be shot on Block 63/16. BG Group also holds Block 53/16.

CNOOC Ltd. signed the production sharing contract with BG Group for the block on June 7, 2006. CNOOC has the right to acquire up to 51% interest in the event of a discovery.